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prisoha [69]
4 years ago
6

A notice is published stating that RMO 5% convertible preferred stock will be called at $60 per share. The preferred is converti

ble into 1/2 share of common and is selling in the market at $56 per share. RMO common stock is selling in the market at $110 per share. After the notice appears, the price of the preferred stock will most likely trade in the market at: _________.
Business
1 answer:
dybincka [34]4 years ago
6 0

Answer: d. A price near $60

Explanation:

The Preferred Stock was selling at $56 then a notice was circulated that RMO would be calling the stock at a price of $60.

This $60 is more than the current $56 and so this will need to reflect in the price of the stock. The adjustment will cause the Preferred stock to start trading near $60 as traders will seek to take advantage of the impending call by buying at a lower price and thus making a bit of profit when the stock is called at $60. The market will adjust to this because the Preferred stock will be perceived as undervalued. A price closer to the Call price will therefore become the new price to properly value the stock.

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Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as foll
grandymaker [24]

Answer:

Decrease by $30,000

Explanation:

Cost to buy = 15,000 * $34

Cost to buy = $510,000

Note: Since Ortega is buying 15000 units at $34, the $40,000 avoidable cost on fixed manufacturing overhead is non-applicable.

Cost of making = $150,000 + $240,000 + $90,000

Cost of making = $480,000

So, if Ortega purchases the component from the supplier instead of manufacturing it, the effect on income would be decrease by $30,000 ($510,000-$480,000).

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3 years ago
What is your current role as a team member either at work, school, family, or sports? How will that role change in the future?
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3 years ago
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To receive an annuity of $8000 for 3 years if interest is earned at 10% annually how much should you invest
Tems11 [23]

Take the $8,000 for the total of aunnity receiving and the 3 year interest rate of aunnity as you will multiply.


8,000 x 3= 24,000


Then once you have that amount of aunnity, what if the 10% was added up to the increase of aunnity receiving.


So, you have to divide the total amount of aunnity and 10% increase chance of having amount of aunnity received.


24,000 ÷ 0.10 <-----(always put the 0.10 for a decimal NOT 10)


24,000 ÷ 0.10= 240,000


YOUR ANSWER IS 240,000 of how much did this person received a aunnity.


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Answer: d. mike cannot disaffirm because he has already ratified the contract

Explanation:

When signing deals it's important to consider long term, this helps to make the best decision in any and most scenario. Most deals signed too cannot be reversed or change or adjusted because it'll affect the policy of the organization and won't be health for them. Mike has agreed to buy a property through a spread payment plan, changing the deal now after some years will not be possible as it distorts the plan intially agreed and goes against the policy of the organization selling the home.

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